Top investment scams
03-25-2005, 10:47 AM
#1
I feel the need...
Thread Starter
Top investment scams
And yes - Renegade - Penny Stocks are still for schmucks:
Top investment scams
Investor protection group releases survey of most common scams being used to fleece investors.
March 25, 2005: 8:29 AM EST
Top 10 Investor Pitfalls
Scams to avoid if you want to keep your money safe.
Heading Heading
1 Ponzi (pyramid) schemes
2 Unlicensed securities dealers
3 Unregistered investment products
4 Promissory notes
5 Investment scams that target senior citizens
6 Sky high-yield investments
7 Internet fraud
8 Schemes that target a race, religion or ethnic group
9 Variable annuity sales
10 Oil & gas scams
Source: North American Securities Administrators Association
NEW YORK (CNN/Money) - In investing, as in life, if it sounds too good to be true, it probably is.
Nowhere is that more clear than with the latest list of scams used to fleece investors, released Thursday by the North American Securities Administrators Association (NASAA).
Ponzi schemes were No. 1 on the list, which was ranked by prevalence and seriousness.
Named for swindler Charles Ponzi, the plans are pyramid schemes that promise to use money from later investors to pay early ones. After the plans collapse, the people who make most of the money are the promoters who set the plan in motion.
Rounding out the top five were investments pushed by unlicensed securities dealers; unregistered investment products; promissory notes; and investment scams that target senior citizens and their life savings.
Internet fraud appeared in the top 10, as well as oil and gas scams.
With oil prices at record highs, regulators warn that con artists will probably dust off old oil ventures, and sell shares in non-existent oil fields and unproven technologies designed to convert common substances into fuel.
While not technically scams, penny stocks, so-called private placements and investment seminars were given "dishonorable" mention.
Investors should contact state regulators with any questions about an investment product, broker or adviser before making an investment, Franklin Widmann, NASAA president and chief of the New Jersey Bureau of Securities, said in a statement.
"One phone call can save a lot of money and heartache," he said.
http://money.cnn.com/2005/03/24/mark...ex.htm?cnn=yes
Top investment scams
Investor protection group releases survey of most common scams being used to fleece investors.
March 25, 2005: 8:29 AM EST
Top 10 Investor Pitfalls
Scams to avoid if you want to keep your money safe.
Heading Heading
1 Ponzi (pyramid) schemes
2 Unlicensed securities dealers
3 Unregistered investment products
4 Promissory notes
5 Investment scams that target senior citizens
6 Sky high-yield investments
7 Internet fraud
8 Schemes that target a race, religion or ethnic group
9 Variable annuity sales
10 Oil & gas scams
Source: North American Securities Administrators Association
NEW YORK (CNN/Money) - In investing, as in life, if it sounds too good to be true, it probably is.
Nowhere is that more clear than with the latest list of scams used to fleece investors, released Thursday by the North American Securities Administrators Association (NASAA).
Ponzi schemes were No. 1 on the list, which was ranked by prevalence and seriousness.
Named for swindler Charles Ponzi, the plans are pyramid schemes that promise to use money from later investors to pay early ones. After the plans collapse, the people who make most of the money are the promoters who set the plan in motion.
Rounding out the top five were investments pushed by unlicensed securities dealers; unregistered investment products; promissory notes; and investment scams that target senior citizens and their life savings.
Internet fraud appeared in the top 10, as well as oil and gas scams.
With oil prices at record highs, regulators warn that con artists will probably dust off old oil ventures, and sell shares in non-existent oil fields and unproven technologies designed to convert common substances into fuel.
While not technically scams, penny stocks, so-called private placements and investment seminars were given "dishonorable" mention.
Investors should contact state regulators with any questions about an investment product, broker or adviser before making an investment, Franklin Widmann, NASAA president and chief of the New Jersey Bureau of Securities, said in a statement.
"One phone call can save a lot of money and heartache," he said.
http://money.cnn.com/2005/03/24/mark...ex.htm?cnn=yes
03-25-2005, 12:13 PM
#4
I feel the need...
Thread Starter
Originally Posted by rise
It would hilarious if an investor invested enough into a penny stock that he accidently bought the whole company 
So hilarious -- kind of like stepping in a pile of shit.
Trending Topics
04-20-2009, 07:05 PM
#8
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How a Personal Finance Columnist Got Caught Up in Fraud
On Sunday, I returned from vacation, picked up the mail and found a disturbing letter from Charles Schwab & Company. It said that it had discovered unauthorized money transfers out of accounts associated with the financial planning firm I use.
The situation was even worse than I had feared. It was my own planner, who was under investigation for siphoning off what appeared to be millions of dollars from client accounts. And, as Schwab’s note helpfully suggested, it might be a good idea to take another look at my statements for the last few years.
In case it is not glaringly obvious, I write a personal finance column for a living. I am also the kind of person who derives joy from reading the fine print on bank statements and runs spreadsheets on my credit card spending. I thought I knew what I was doing. So if I can get mixed up in something like this, trust me, it can happen to anyone.....
The situation was even worse than I had feared. It was my own planner, who was under investigation for siphoning off what appeared to be millions of dollars from client accounts. And, as Schwab’s note helpfully suggested, it might be a good idea to take another look at my statements for the last few years.
In case it is not glaringly obvious, I write a personal finance column for a living. I am also the kind of person who derives joy from reading the fine print on bank statements and runs spreadsheets on my credit card spending. I thought I knew what I was doing. So if I can get mixed up in something like this, trust me, it can happen to anyone.....
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